DuPont Decomposition
Why does MAXHEALTH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.5% = 15.6% × 0.45 × 1.62
Latest: FY2025
Profitability
Net Margin
15.6%
20.7% →15.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.45x
0.12x →0.45x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.62x
1.36x →1.62x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.1 pp over 3 years. Driven by net margin declining (20.7% → 15.6%), asset turnover improving (0.12x → 0.45x), leverage rising (1.36x → 1.62x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 20.7% | 0.12 | 1.36 | 3.4% |
| FY2024 | ₹0Cr | ₹0Cr | 17.7% | 0.12 | 1.43 | 3.0% |
| FY2025 | ₹0Cr | ₹0Cr | 15.6% | 0.45 | 1.62 | 11.5% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.